DBS Bank's Tokenized Structured Notes on Ethereum Drive Over $1 Billion in H1 2025 Trades

DBS Bank, Singapore's largest financial institution, has announced the tokenization of structured notes on the Ethereum public blockchain, aiming to broaden access for accredited and institutional investors. This initiative, distributed through platforms like ADDX, DigiFT, and HydraX, transforms traditionally illiquid financial products into more flexible, tradable units. The move addresses the increasing institutional appetite for digital assets and leverages blockchain technology for enhanced efficiency and accessibility in financial markets.

Structured notes, typically requiring a minimum investment of $100,000, are now being issued in $1,000 denominations through this tokenization. The initial offerings include cash-settled crypto-linked participation notes, designed to provide investors with cash payouts when crypto prices rise while mitigating potential losses during declines. This fractionalization makes sophisticated financial instruments more manageable for portfolio diversification.

Demand for these digital asset products has been robust, with DBS reporting over $1 billion in trades executed by its clients in the first half of 2025. Trading volumes for these instruments saw a significant increase, jumping nearly 60% between the first and second quarters of the year. This surge reflects the growing interest from family offices and professional investors, particularly in Singapore, which saw a 43% increase in single-family offices in 2024.

This development is part of DBS's broader digital asset strategy, which has been active in tokenization initiatives since 2021. Li Zhen, Head of Foreign Exchange and Digital Assets for Global Financial Markets at DBS, stated, "Asset tokenization is the next frontier of financial markets infrastructure." Beyond crypto-linked notes, the bank plans to tokenize other common structured notes, including equity-linked and credit-linked instruments, further expanding its digital offerings.

The move aligns with Singapore's proactive regulatory environment, exemplified by the Monetary Authority of Singapore's (MAS) Project Guardian, which explores asset tokenization and decentralized finance. DBS has been a key participant in these pilots, transitioning from permissioned blockchain experiments to leveraging Ethereum's public network. This strategic shift underscores Singapore's ambition to become a global hub for tokenized finance.